Norfolk brewer calls on Government to reduce VAT taxes on hospitality

Chancellor Jeremy Hunt decided to reverse the freeze on alcohol duty, previously announced as part of the Mini budget

David Holliday
Author: Tom ClabonPublished 20th Oct 2022

A Norfolk brewer is calling on the Government to reduce VAT taxes on food and drink, to help the sector cope with soaring inflation.

It comes after it rose to 10.1% yesterday- the highest rate it's been in 40 years. It's a climb that's being fuelled by rising food and energy prices.

The recently appointed Chancellor Jeremy Hunt has decided to reverse the freeze on alcohol duty that was previously announced as part of the Mini budget.

"It's sensible to reduce those taxes"

David Holliday is the owner of Moon Gazer Ale in Hindringham.

He says the chancellor needs to do more to help a struggling sector:

"This level of inflation will put pressure on our sector and continue to do so as we go into the quieter times as well. The Government have supported us through the energy crisis, with the cap- that will help. In terms of hospitality and pubs they are vital to the economy, they employ so many people and it's such a huge part of the national GDP. Therefore, it's sensible to reduce those taxes".

"It doesn't cost the government to reduce this tax, it's been proven not to do so. It's been proven to stimulate demand, and I urge the government to have sensible consideration to cut VAT on food and drink, to keep people going down the pub because we all need that and it's very important. I just hope that sense prevails, and something will happen in that vein".

""We are going to have to swallow the bulk of these price"

Mr Holliday told us that they'll have to bear the brunt of this:

"We are going to have to swallow the bulk of these prices, because we can't continue to pass all of these prices on. We need to be sustainable, but we need to keep the prices of beers in pubs sensible, so people can enjoy them. So, while we are passing some prices on, we are absorbing others just to survive".

What have the Government said on this?

The Government say the energy guarantee will help business owners with their bills.

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